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Terns Pharmaceuticals(TERN) - 2024 Q3 - Quarterly Report
TERNTerns Pharmaceuticals(TERN)2024-11-12 21:45

Drug Development - TERN-701, an allosteric BCR-ABL inhibitor for chronic myeloid leukemia, showed a median half-life of 8 to 12 hours and received Orphan Drug Designation in March 2024[77]. - TERN-601, a GLP-1 receptor agonist for obesity, demonstrated a maximum placebo-adjusted mean weight loss of 4.9% (p<0.0001) at the highest dose of 740 mg QD in a Phase 1 trial[77]. - TERN-501, a THR-β agonist, showed positive top-line data in a Phase 2a trial but spending will be limited due to regulatory requirements[77]. - TERN-800 series is focused on developing GIPR modulators for obesity, with a potential for combination therapies with GLP-1 receptor agonists[78]. - The company plans to initiate a Phase 2 clinical trial for TERN-601 in early Q2 2025, with initial data expected in the second half of 2025[77]. Financial Performance - Research and development expenses for Q3 2024 were 15,169,000,a2.315,169,000, a 2.3% increase from 14,831,000 in Q3 2023[79]. - Total operating expenses for Q3 2024 were 24,939,000,downfrom24,939,000, down from 33,184,000 in Q3 2023, reflecting a decrease of 25%[79]. - The net loss for Q3 2024 was 21,945,000,comparedtoanetlossof21,945,000, compared to a net loss of 29,767,000 in Q3 2023, indicating an improvement of 26.4%[79]. - Total research and development expenses for the nine months ended September 30, 2024, were 52,108,000,upfrom52,108,000, up from 46,038,000 in the same period of 2023, reflecting a 13.5% increase[84]. - The company reported a net loss of approximately 67.1millionfortheninemonthsendedSeptember30,2024,withnegativecashflowsfromoperationsofapproximately67.1 million for the nine months ended September 30, 2024, with negative cash flows from operations of approximately 55.4 million[93]. Cash and Financing - As of September 30, 2024, the company had an accumulated deficit of approximately 399.7millionandcash,cashequivalents,andmarketablesecuritiestotaling399.7 million and cash, cash equivalents, and marketable securities totaling 372.8 million[93]. - Net cash provided by financing activities during the nine months ended September 30, 2024, was 163.7million,primarilyfromtheissuanceofcommonstockandpre−fundedwarrants[108].−Thecompanyissued14,064,048sharesofcommonstockatapublicofferingpriceof163.7 million, primarily from the issuance of common stock and pre-funded warrants[108]. - The company issued 14,064,048 shares of common stock at a public offering price of 10.50 per share in September 2024, resulting in aggregate net proceeds of 161.9million[96].−CashusedinoperatingactivitiesfortheninemonthsendedSeptember30,2024,was161.9 million[96]. - Cash used in operating activities for the nine months ended September 30, 2024, was 55.4 million, consisting mainly of the net loss and adjustments for stock-based compensation[103]. - The company expects to incur significant operating losses for the foreseeable future as it advances the development of its product candidates[99]. - The company believes its existing cash and cash equivalents will be sufficient to fund planned operating expenses and capital expenditures into 2028[91]. - The company has not generated any revenue from product sales since inception and continues to rely on additional financing to achieve its business objectives[102]. General and Administrative Expenses - General and administrative expenses decreased by 8.6millionforthethreemonthsendedSeptember30,2024,comparedtothesameperiodin2023,primarilyduetoareductioninpersonnel−relatedexpenses[87].−InterestincomeforthethreemonthsendedSeptember30,2024,was8.6 million for the three months ended September 30, 2024, compared to the same period in 2023, primarily due to a reduction in personnel-related expenses[87]. - Interest income for the three months ended September 30, 2024, was 3.1 million, down from $3.5 million in the same period in 2023, attributed to a decrease in marketable securities[88].